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STAR's big gamble with Shah Rukh
Tuesday December 5, 03:23 AM
Finance News
Hold your breath. ShahRukh Khan will be paid a humungous Rs 70 lakh per episode for the new round of Kaun Banega Crorepati? (KBC) on STAR Plus. That is close to doubling the Rs 40-lakh-per-episode rate paid to Amitabh Bachchan for the previous rounds. ShahRukh Khan must have done the math. The KBC contract with 52 one-hour episodes running from mid-January to April is worth a mouth-watering Rs 36.4 crore.
As a single annual contract, this is possibly the highest a Bollywood screen actor has signed to date. The other big whopper speculated about is the Rs 30 crore deal between Adlabs and Hrithik Roshan for three movies. Who says the small screen does not pay? "It's a supply-demand mismatch," said a senior STAR executive. Who can replace the Big B but a ShahRukh Khan? But then you have to pay what he demands." The Filmy Stock Exchange - Sahara's Filmy channel's online popularity scale of Bollywood actors based on performance of films and the 'buying' of individual actors' stock - puts Shahrukh Khan at the top with his 'stock' worth Rs 314 compared to Hrithik Roshan at Rs 282 and bottom-of-the-table Reitesh Deshmukh at Rs 72.
Shailaja Kejriwal, STAR's head of programming and ad sales, refused to divulge details claiming speculation on ShahRukh Khan's takings ranged between Rs 35 lakh and Rs 2.5 crore an episode. However, senior STAR sources preferring anonymity confirmed that ShahRukh Khan's dotted line indeed read Rs 70 lakh per episode.But from STAR's point of view, what does this hugely expensive reality show mean for the network? If it clicks, will it consolidate STAR Plus' domination over Hindi entertainment television? Or will it turn out to be a money-guzzling Achilles Heel?
STAR's Kejriwal said for a cricket World Cup year, KBC would kick-off in mid-January and end by April before the main cricket matches start. "KBC is crucial for STAR's strategy to retain its lead and consolidate its channel image," she said. "Advertisers are excited. With India not doing well in cricket, they will rework their plans. KBC will be an important element in that," Kejriwal added.
However, media planners pointed out that STAR would need to sell KBC for Rs 11-12 lakh per minute to break even. Add to Shah Rukh's fees of Rs 70 lakh per episode the production costs and licensing fees to format owner Celedor, and the cost of each episode would be well over Rs 1 crore. With just 10 minutes of airtime available for sale per one-hour episode, a rate of Rs 11-12 lakh per minute would be the break-even figure.However, currently the channel's top shows like 'Kyunki Saas and #8230;' sell at Rs 3-4 lakh per 30 seconds. This means Shah Rukh and KBC would have to perform really well to help STAR's ad sales teams to garner higher numbers. If it does not, it could mean a huge loss for the channel.
www.HindustanTimes.com
Tuesday December 5, 03:23 AM
Finance News
Hold your breath. ShahRukh Khan will be paid a humungous Rs 70 lakh per episode for the new round of Kaun Banega Crorepati? (KBC) on STAR Plus. That is close to doubling the Rs 40-lakh-per-episode rate paid to Amitabh Bachchan for the previous rounds. ShahRukh Khan must have done the math. The KBC contract with 52 one-hour episodes running from mid-January to April is worth a mouth-watering Rs 36.4 crore.
As a single annual contract, this is possibly the highest a Bollywood screen actor has signed to date. The other big whopper speculated about is the Rs 30 crore deal between Adlabs and Hrithik Roshan for three movies. Who says the small screen does not pay? "It's a supply-demand mismatch," said a senior STAR executive. Who can replace the Big B but a ShahRukh Khan? But then you have to pay what he demands." The Filmy Stock Exchange - Sahara's Filmy channel's online popularity scale of Bollywood actors based on performance of films and the 'buying' of individual actors' stock - puts Shahrukh Khan at the top with his 'stock' worth Rs 314 compared to Hrithik Roshan at Rs 282 and bottom-of-the-table Reitesh Deshmukh at Rs 72.
Shailaja Kejriwal, STAR's head of programming and ad sales, refused to divulge details claiming speculation on ShahRukh Khan's takings ranged between Rs 35 lakh and Rs 2.5 crore an episode. However, senior STAR sources preferring anonymity confirmed that ShahRukh Khan's dotted line indeed read Rs 70 lakh per episode.But from STAR's point of view, what does this hugely expensive reality show mean for the network? If it clicks, will it consolidate STAR Plus' domination over Hindi entertainment television? Or will it turn out to be a money-guzzling Achilles Heel?
STAR's Kejriwal said for a cricket World Cup year, KBC would kick-off in mid-January and end by April before the main cricket matches start. "KBC is crucial for STAR's strategy to retain its lead and consolidate its channel image," she said. "Advertisers are excited. With India not doing well in cricket, they will rework their plans. KBC will be an important element in that," Kejriwal added.
However, media planners pointed out that STAR would need to sell KBC for Rs 11-12 lakh per minute to break even. Add to Shah Rukh's fees of Rs 70 lakh per episode the production costs and licensing fees to format owner Celedor, and the cost of each episode would be well over Rs 1 crore. With just 10 minutes of airtime available for sale per one-hour episode, a rate of Rs 11-12 lakh per minute would be the break-even figure.However, currently the channel's top shows like 'Kyunki Saas and #8230;' sell at Rs 3-4 lakh per 30 seconds. This means Shah Rukh and KBC would have to perform really well to help STAR's ad sales teams to garner higher numbers. If it does not, it could mean a huge loss for the channel.
www.HindustanTimes.com
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